Are there any programs other than RRSP that allow tax exemptions for a salaried employee? I am not sure about TFSA. Appreciate some feedback. Thanks in advance.
Quote:
Originally posted by gktaurus
Are there any programs other than RRSP that allow tax exemptions for a salaried employee? I am not sure about TFSA. Appreciate some feedback. Thanks in advance.
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Please go through this link thoroughly. Understand and explore all the the details mentioned there in and highloghted. I found it very useful.
http://ca.finance.yahoo.com/taxes/article/moneysense/18/tax-planning-tips
TFSA is an excellent vehicle, if you want to save on taxes on the monies paid out to you as interest. It shelters the investment and the funds that grow within. It can be doubled if you and your spouse, if any, can also make use of this system. There are brokers who will permit you to use this sum in their day to day trading and in doing so, you also shelter the gains made within the investment. More on it after I explore the avenues.
Hope this helps you a little.
Freddie.
Location: Brampton, Ont, Canada
Posted on: 27-10-09 09:43:37
there is not much we can do as salary worker.
howerver, if u hv kids then u can put daycare expense
Also, i just heard from one of the accountant that many salary emplyee dosent know that they can saw 10% of employee expense ( food, gift, travel etc...)-
NOTE: I AM NOT AN ACCOUNTANT so please clarify this with your accountant
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Location: Western Hemisphere
Posted on: 27-10-09 10:07:30
Quote:
Originally posted by gktaurus
Are there any programs other than RRSP that allow tax exemptions for a salaried employee? I am not sure about TFSA. Appreciate some feedback. Thanks in advance.
1. RRSP would be the major item (I think the only item) for a salaried employee where you can contribute before tax money to RRSP through employer plan and hence potentially enjoy lower taxable income.
2. If you are looking for tax deductions/non-refundable credits that you can claim on your return, then you have, as a sample:
RRSP, Day care expenses, charitable contributions, Child fitness credit (if a child is enrolled in a qualifying program such as soccer or swimming), "employment amount" (this is something that started in 2007 and was $1019 for 2008), Child amount - line 367 (was $2038 in 2008).
3. If you are looking for ways to save tax deferred, the you have as a sample -
TFSA, RRSP, RESP.
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Dimple2001
Thank u very much Freddie,Blue_Peafowl and Dimple2001. Your response is helpful and appreciate it.
I thnk I a paying a little more tax(in the range 80~90k) and trying to find various options to reduce / differ etc.
Thanks,
Quote:
Originally posted by dimple2001
3. If you are looking for ways to save tax deferred, the you have as a sample -
TFSA, RRSP, RESP.
Is RESP deferred as well?
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Mumbai Maazi Ladki ...
Location: Western Hemisphere
Posted on: 28-10-09 07:02:35
Quote:
Originally posted by Maharaj
Is RESP deferred as well?
RESP is a tax deferred plan where the tax is sheltered until withdrawn to use. At that time, the earnings (cap gains/dividends, etc) are taxed at the tax rate of the beneficiary (the child who is using the money).
The advantage is the tax would be very low since the beneficiary most likely will be at the lowest tax bracket.
There is no tax deduction advantage for the contributor.
On a another note, the TFSA is tax free, not just tax deferred.
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Dimple2001
